A company decides to invest 5% of its present profits into the stock market each year. The company profits continue to increase by 12.5% annually and after 5 years the board decides to change its investment to 5% of the present profits. If the annual return on the investment is 16% compound interest, calculate the total value of the investment after 10 years if in the initial year the company's profit were £500,000.
Help - the text book says the answer is £147,130.64 but I cannot get this??